It’s no longer a secret that most companies struggle with strategy execution. McKinsey research tells us, for example, that 70 percent of change efforts fall short of desired results. The financial losses implied by statistics like these are massive, and corporate leaders have taken notice. Today’s senior leaders realise that implementation is at least half of the leadership challenge when it comes to improving performance via strategic change. Too frequently, however, they seek solutions in the wrong place.

When I speak to executives about what constitutes effective strategy execution, they very often emphasise the importance of “communication”. If they could only master the art of communicating the new corporate strategy, employee alignment would be guaranteed and resistance overcome. Of course, having a clear and consistent message is essential. But within organisational culture there can be powerful, unspoken messages that contradict official rhetoric. Peter Drucker famously said, “Culture eats strategy for breakfast.” I believe the same could be said of strategy execution.

Collective emotions

Managers are usually uncomfortable dealing with emotions in business settings, especially the all-important collective emotions — i.e., various emotions experienced by different stakeholder groups inside and outside the organisation, including employees, customers, communities, and investors. However, as much as managers may want their intended strategy to succeed, they still find it difficult to accept that the fate of their best-laid plans depends on the emotional allegiance of these groups. Instead, they assume their communications—which often focus only on the intellectual “left brain” rather than incorporating the “right brain”, the seat of emotional engagement —will be heeded when their back is turned.

My prior research shows that executives who are receptive to the subtle, non-verbal signs of collective emotion are more likely to have the credibility required to lead strategic change. Sadly, such leaders are still few and far between.

Over time, emotionally illiterate leadership gives rise to a change-averse corporate culture. While profits are high and the economic climate remains promising, the problem stays under the radar—much like the early stage of cancer. But when a change in course becomes necessary, senior leaders find that no matter how hard they try, transformation never takes root.